Krupp - Overview

Overview

Friedrich Krupp (1787–1826) launched the family's metal-based activities, building a pioneering steel foundry in Essen in 1810. His son Alfred (1812–87), known as "the Cannon King" or as "Alfred the Great", invested heavily in new technology to become a significant manufacturer of steel rollers (used to make eating utensils) and railway tyres. He also invested in fluidized hotbed technologies (notably the Bessemer process) and acquired many mines in Germany and France. Unusually for the era, he provided social services for his workers, including subsidized housing and health and retirement benefits.

The company began to make steel cannons in the 1840s—especially for the Russian, Turkish, and Prussian armies. Low non-military demand and government subsidies meant that the company specialized more and more in weapons: by the late 1880s the manufacture of armaments represented around 50% of Krupp's total output. When Alfred started with the firm, it had five employees. At his death twenty thousand people worked for Krupp—making it the world's largest industrial company and the largest private company in the German empire.

In the 20th century the company was headed by Gustav Krupp von Bohlen und Halbach (1870–1950), who assumed the surname of Krupp when he married the Krupp heiress, Bertha Krupp. After Adolf Hitler came to power in Germany in 1933, the Krupp works became the center for German rearmament. In 1943, by a special order from Hitler, the company reverted to a sole-proprietorship, with Gustav and Bertha's eldest son Alfried Krupp von Bohlen und Halbach (1907–67) as proprietor. After Germany's defeat, Gustav was senile and incapable of standing trial, and the Nuremberg Military Tribunal convicted Alfried as a war criminal in the Krupp Trial for "plunder" and for his company's use of slave labor. It sentenced him to 12 years in prison and ordered him to sell 75% of his holdings. In 1951, as the Cold War developed and no buyer came forward, the authorities released him, and in 1953 he resumed control of the firm.

In 1968, the company became a corporation. In 1999, the Krupp Group merged with its largest competitor, Thyssen AG; the combined company—ThyssenKrupp AG, became Germany's fifth-largest firm and one of the largest steel producers in the world.

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